BOE’s Saunders: Brexit will probably have a moderate negative impact in the long run

Reuters reports comments from the BOE hawk Michael Saunders, as he testifies before the Treasury Select Committee (TSC).

Labour market will continue to tighten.

Does not think labour market has overheated yet.

Jobless rate will fall more than the MPC base case.

Views that Q1 weakness is erratic or may be revised away.

Brexit will probably have a moderate negative impact in the long run.

Inflation impact of Sterling’s drop is starting to fade.